Summary
With contributions to United Nations (UN) organizations totaling more than $1.6 billion in 2006-2007, the United States has advocated strong UN oversight. In 1994, the United States provided support to establish the Office of Internal Oversight Services (OIOS). The findings of the Independent Inquiry Committee (IIC) into the Oil for Food Program have renewed concerns about UN oversight, and the 2005 World Summit proposed actions to improve OIOS. We were asked to examine (1) the extent to which UN funding arrangements for OIOS ensure independent oversight, and (2) the consistency of OIOS practices with key international auditing standards.
UN funding arrangements constrain OIOS's ability to operate independently as mandated by the General Assembly and required by international auditing standards that OIOS has adopted. First, while OIOS is funded by a regular budget and 12 other revenue streams, UN financial rules severely limit OIOS's ability to reallocate resources among revenue streams, locations, and operating divisions. Thus, OIOS cannot always direct resources at high-risk areas when they arise. Second, OIOS is dependent on the funds, programs, and other entities it audits for reimbursement for its services. The managers of the programs OIOS intends to examine can deny OIOS permission to perform work or not pay OIOS for services. UN entities could thus avoid OIOS audits or investigations, and high-risk areas can be and have been excluded from examination. OIOS has begun to implement key measures for effective oversight, but some of its practices fall short of applicable international auditing standards. OIOS develops an annual work plan, but the risk management framework on which the work plans are based is not fully implemented. Moreover, OIOS annual reports do not assess risk and control issues facing the UN organization or the consequences if these are not addressed. OIOS officials report that the office does not have adequate resources, but they also do not have a mechanism to determine appropriate staffing levels. Moreover, OIOS has no mandatory training curriculum for staff or systematic procedures for ensuring the reliability of data used for their audits. OIOS also does not require all staff to document their independence. Although two OIOS divisions have recently undergone external reviews, the other two have not undergone such a review within the last 5 years. OIOS monitors and reports on the status of its recommendations and is making efforts to improve follow up on oversight recommendations.
Recommendations
Our recommendations from this work are listed below with a Contact for more information. Status will change
from "In process" to "Implemented" or "Not implemented" based on our follow up work.
Director:
Team:
Phone:
Thomas Melito
Government Accountability Office: International Affairs and Trade
(202) 512-9601
Recommendations for Executive Action
Recommendation: To provide reasonable assurance of independent, effective oversight in the United Nations, the Secretary of State and the Permanent Representative of the United States to the United Nations should work with member states to support budgetary independence for OIOS and OIOS's efforts to more closely adhere to international auditing standards, including measures to ensure reliable funding arrangements for OIOS that do not undermine the independence of OIOS and provide it with sufficient resources that it can effectively reallocate and deploy as may be necessary to meet high-risk areas as they arise.
Agency Affected: Department of State
Status: In process
Comments: No action reported.
Agency Affected: United Nations: Permanent Representative of the United States to the United Nations
Status: In process
Comments: No action reported.
Recommendation: To provide reasonable assurance of independent, effective oversight in the United Nations, the Secretary of State and the Permanent Representative of the United States to the United Nations should work with member states to support budgetary independence for OIOS and OIOS's efforts to more closely adhere to international auditing standards, including measures to complete the implementation of OIOS's risk management framework to ensure that its annual work plans address those areas that pose the highest risks.
Agency Affected: Department of State
Status: In process
Comments: No action reported.
Agency Affected: United Nations: Permanent Representative of the United States to the United Nations
Status: In process
Comments: No action reported.
Recommendation: To provide reasonable assurance of independent, effective oversight in the United Nations, the Secretary of State and the Permanent Representative of the United States to the United Nations should work with member states to support budgetary independence for OIOS and OIOS's efforts to more closely adhere to international auditing standards, including measures to report to the General Assembly on the status of significant risks and control issues facing the UN organization, the resources necessary to address these issues, and the consequences to the organization if any risks and control weaknesses are not addressed.
Agency Affected: Department of State
Status: In process
Comments: No action reported.
Agency Affected: United Nations: Permanent Representative of the United States to the United Nations
Status: In process
Comments: No action reported.
Recommendation: To provide reasonable assurance of independent, effective oversight in the United Nations, the Secretary of State and the Permanent Representative of the United States to the United Nations should work with member states to support budgetary independence for OIOS and OIOS's efforts to more closely adhere to international auditing standards, including measures to develop a workforce planning methodology to systematically assess and determine appropriate staffing levels for the office.
Agency Affected: Department of State
Status: In process
Comments: No action reported.
Agency Affected: United Nations: Permanent Representative of the United States to the United Nations
Status: In process
Comments: No action reported.
Recommendation: To provide reasonable assurance of independent, effective oversight in the United Nations, the Secretary of State and the Permanent Representative of the United States to the United Nations should work with member states to support budgetary independence for OIOS and OIOS's efforts to more closely adhere to international auditing standards, including measures to institute a mandatory training curriculum for OIOS professional staff, including auditors and investigators.
Agency Affected: Department of State
Status: In process
Comments: No action reported.
Agency Affected: United Nations: Permanent Representative of the United States to the United Nations
Status: In process
Comments: No action reported.
Recommendation: To provide reasonable assurance of independent, effective oversight in the United Nations, the Secretary of State and the Permanent Representative of the United States to the United Nations should work with member states to support budgetary independence for OIOS and OIOS's efforts to more closely adhere to international auditing standards, including measures to establish guidance and procedures for assessing the reliability of data used in support of significant findings in OIOS reports.
Agency Affected: Department of State
Status: In process
Comments: No action reported.
Agency Affected: United Nations: Permanent Representative of the United States to the United Nations
Status: In process
Comments: No action reported.
Recommendation: To provide reasonable assurance of independent, effective oversight in the United Nations, the Secretary of State and the Permanent Representative of the United States to the United Nations should work with member states to support budgetary independence for OIOS and OIOS's efforts to more closely adhere to international auditing standards, including measures to require all OIOS professional staff to file statements of independence and financial disclosures; institute procedures to adequately review such statements.
Agency Affected: Department of State
Status: In process
Comments: No action reported.
Agency Affected: United Nations: Permanent Representative of the United States to the United Nations
Status: In process
Comments: No action reported.
